Detroit Bankruptcy and Emergency Management. Where is it? Whats Next?

A federal judge overseeing Detroit's bankruptcy says a lawsuit can go forward challenging Michigan's emergency manager law.

The July bankruptcy filing put a hold on litigation involving Detroit and certain state officials. But Judge Steven Rhodes said Wednesday the lawsuit can proceed as long as it doesn't seek to remove the city's emergency manager, Kevyn Orr.

Rhodes says plaintiffs in that lawsuit have agreed to that condition. The case is pending before another judge in Detroit federal court.